4 Mar 2009

DHB deficits expected to reach $200m

11:06 am on 4 March 2009

District Health Board deficits are expected to blow out to $200 million in the 2009/10 financial year.

The Crown Health Financing Agency, which lends money to health boards, has told the Health Select Committee at Parliament that seven of the 21 DHBs are considered "at risk".

A Radio New Zealand political reporter says this means remedial action is required to justify continued lending.

Fifteen DHBs are currently operating in deficit.

The agency says the projected deficit is due to a decrease in revenue and an increase in costs including wages and demand for services.